Global Markets Rattle as U.S. Inflation Looms and Dollar Soars

Asian stocks hit new lows as investors await critical U.S. inflation data. The dollar reached a two-year high, and policy uncertainties in Trump's administration add to market tensions. Central banks globally are holding rates steady amidst fluctuating yield and currency values. Commodities are also affected by these economic dynamics.

Asian markets plunged to a three-month low on Friday, anxiously anticipating crucial U.S. inflation figures that could either alleviate or exacerbate existing inflation worries. The dollar soared to a two-year high, inflicting pressure on European markets, and further sliding Nasdaq and S&P futures.

The much-scrutinized U.S. inflation tracker, Core Personal Consumption Expenditures, is forecasted to show a monthly rise of 0.2% for November. This has led to speculation that any rise beyond this might dampen hopes for U.S. policy easements in the upcoming year. Political rifts within President-elect Trump's Republican Party further contribute to the uncertainty.

Trump's economic strategies, including tariffs and significant spending, have influenced the Federal Reserve's cautious stance on easing policy next year. This outlook has driven Treasury market rates higher, while inflation concerns take a toll on commodities as the dollar maintains its upward trajectory.

(With inputs from agencies.)